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Planning Commision
Planning Commision
The 200 backward districts where the NREGA is being implemented make the Act more desirable
but at the same time less feasible. Their unique socio-economic and governance problems better
be understood for the NREGA to be effective.
The 200 backward districts, identified by the Planning Commission (See box: Measuring
Backwardness), will pose major challenges to the implementation of the NREGA because of their
special problems. They are the least developed areas of the country comprising mostly marginal
farmers and forest dwellers. In many of these districts poverty has increased despite consistent
focus of several poverty eradication programmes. Governance has little or no presence in most of
these distric ts.
The NREGA with the aim to reduce poverty is thus desirable for these districts. The NREGA can
target development using huge demand for casual jobs. However, the absence of governance will
make the implementation difficult. It is thus imperative to understand the complex socio-
economic and governance challenges of the backward districts. This will help implement the
NREGA in an effective way. And for the NREGA, these districts will decide its overall success.
A difficult constituency
Widespread poverty is a major feature with all these districts. A large number of them are
located in the arid and semi–arid regions with 94 districts covered under the Drought
Prone Areas Programme (DPAP) and 8 districts covered under the Desert Development
Programme (DDP)1.
The socio economic indicators of most of these districts are generally below the national average.
Out of these 200 districts, 148 have literacy lower than the national average (63.58%) while the
rate of female literacy in 154 districts is lower than the national average of 54.16%. Also, the
proportion of SC/ST population in most of these areas is higher than in other areas. In 41 of them
(which does not include Jamtara, Latehar, Simdega, Sraikela-Kharsawan districts of Jharkhand for
which census 2001 figures are not available) STs constitute majority of the population2.
These districts are also the most backward regions in terms of connectivity. There are 21 districts
in the Himalayan region and the North East that are completely mountainous. Besides, a number
of districts in Jharkhand, Chattisgarh, Maharashtra, Madhya Pradesh, Andhra Pradesh and Orissa
have hilly terrain. There are also wide variations in the size and population of the districts.
Socio-economic profile
These districts are primarily agricultural and in 115 districts, the percentage of agricultural
labourers in the total rural working population is higher than the national average of 33 percent,
indicating the large-scale landlessness in these districts combined with lack of effective
employment opportunities in the non-agricultural sector. The result is lower incomes for a large
section of the rural population contributing towards the backwardness of these districts apart from
agro–climatic and physiographic conditions.
1
Second Administrative Reform Commission Report, Government of India, July 2006
2
Based on Census 2001 report figures
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Less governed
Panchayati Raj Institutions are the designated agencies for the implementation of NREGA. The
village Panchayat will implement at least 50 percent of total works. There are 61,763 village
Panchayats in the 200 districts as compared to 1894 block Panchayats. So the number of
implementing agency is very high and they are very diverse in their political and socio-economic
structures. Currently the ministry of rural development claims that the village Panchayats are
implementing close to 83 percent of total NREGA works while others including independent
implementing agencies and block Panchayats are implementing around 17 percent of works.
However, in some of the 200 districts, Panchayats do not exist, or are non-functional and the
Gram Sabhas which are require to choose the shelf of projects are dormant in some of the cases.
The second administrative reform commission report is very vocal in pointing out that in many of
the districts the local governance is non-existent.
Out of the 200 districts, 119 are in seven states: Bihar, Chattisgarh, Jharkhand, Madhya Pradesh,
Orissa, Rajasthan and Uttar Pradesh. Except Rajasthan, all the six states are affected by Left
extremism. Altogether 64 districts are severely affected by extremism. There are districts where
the Panchayats are non-existent, non-functional due to the problem of not having regular and
dedicated functionaries. So the first challenge is to bring back governance to these districts.
While on the one hand these districts’ Panchayats are not that well governed, on the other hand
the NREGA puts further governance pressures. Each Panchayat has to make a perspective plan
and annual plans for implementing the scheme. The perspective plan is an extensive exercise that
includes charting of the village’s resources, its poverty, its demands, work situations and based on
these facts prescribing a template for future development requirements. The annual plan involves
identifying needy people, scooping works for them in advance and also prepare horde of accounts.
The nature of local governments varies considerably in these 200 districts as the constitution of
local bodies in the Fifth Schedule areas will be considerably different from those falling under the
Sixth Schedule Areas, such as, Mizoram and Meghalaya, where Part IX of the constitution is not
applicable.
In the areas under the Fifth Schedule of the Constitution, where as many as 63 of these backward
districts are located, the quality of local bodies was expected to improve after the enactment of the
Panchayats (Extension to the Scheduled Areas) Act, 1996. So, it is the success in the
implementation of PESA, which will have a bearing effect on the implementation of NREGA.
There is ample evidence that the delivery of basic public services, particularly those intended to
benefit the poor and weaker sections, has functioned relatively ineffectively in the backward
districts, even when funds have not been a constraint. Delivery of basic public services in these
backward districts has suffered due to, on one hand, weak administration, understaffing and lack
of motivation and on the other, large-scale leakages.
There is need to recognise that conditions prevailing in these backward districts may impede the
smooth flow of funds for the implementation of NREGA. The usual channels for transfer of funds
in the more progressive states may not work in many of these districts.
Backward districts pose implementation challenges that are as varied as the terrain is inhospitable
and thereby the approach of “one-size-fits-all” is not feasible. The final approach should be one
that takes into account the heterogeneity, specific problems and constraints, peculiar to each
district.
BOX
Measuring Backwardness
Attempts to identify the poorest or most backward districts in the country have been made
since 1960. A committee of the Government of India’s Ministry of Rural Areas and
Employment the previous name for the Ministry of Rural Development conducted one of
the most elaborate exercises for the ide ntification of backward districts in 1997. Headed
by EAS Sarma, who was then Principal Advisor to the Planning Commission, the
committee used a composite method with differing weights for parameters such as:
• Incidence of poverty
• Education
• Health
• Water supply
• Transport and communications, and
• Degree of industrialization.
There were no districts from Gujarat, Goa, Kerala, Punjab, Andhra Pradesh and Tamil
Nadu. The committee did not consider the northeastern states and Jammu and
Kashmir as it felt "they had problems which were specific and peculiar to them".
The Backward Regions Grant Fund classification is based on the RSVY classification
of districts. In addition it also uses the National Rural Employment Guarantee Act list
of districts.
• Poverty
• Hunger
• Infant mortality
• Immunization, and
• Literacy and elementary school enrolment.
They considered districts, which figured in the bottom quarter under four of these six
criteria as the 'most backward' districts in the country.
The list has 69 districts. Most of them are located in the states of Bihar, Uttar Pradesh,
Orissa and Jharkhand. Other than these states, the 'most backward' districts are found only
in Arunachal Pradesh (3 districts), Karnataka (1) and Madhya Pradesh (5).
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003
Actual State District Total SC Agri. Output /
Rank ST Pop. Wages Agri.
in %age (Rs/day) Worker
(1991 1996-97 (Rs/Ag
Census) Worker)
(1990-93)
Report of the Task Force on "Identification of Districtsfor Wage and Self employment programmes", Planning
Commission, 2003